ADEN/DUBAI | Saudi Arabia has temporarily shut down its 1,200-kilometer East-West oil pipeline after a drone attack linked to Iraq, adding a new threat to global energy supplies as Iran-backed Houthi forces tighten their hold over the Red Sea’s strategic Bab el-Mandeb Strait.
The Saudi Energy Ministry said the pipeline was closed as a precaution after multiple attacks. The pipeline, which carries crude from Saudi Arabia’s eastern oil fields to the Red Sea port of Yanbu, has been transporting about 4 million to 5 million barrels per day in recent months, equivalent to roughly 4% to 5% of global oil supply, according to Reuters. Satellite imagery showed smoke rising from a damaged facility south of Medina, while Saudi authorities reported injuries and said damage was still being assessed.
The attack has also triggered a political crisis in Iraq. Baghdad confirmed that the strikes originated from Iraqi territory and dismissed two senior officials as it launched an investigation. An umbrella organization representing Iran-backed Iraqi militias denied involvement. Iraq has also ordered the closure of the Shalamcheh border crossing with Iran as a precaution, according to Reuters.
The Iraqi government is under increasing pressure to restrain powerful armed groups operating outside state control. It has set September 30 as a deadline for nonstate groups to disarm, although several major militias have said they will not comply, the Associated Press reported.
U.S. President Donald Trump said Iran was probably responsible for the pipeline attack, although no group has claimed responsibility. Saudi Arabia has so far refrained from retaliating against Iraq following a request from the Iraqi government, while warning that it reserves the right to take measures to protect its interests, Reuters reported.
The pipeline shutdown comes at a particularly vulnerable moment for Saudi Arabia. The East-West system has become a critical alternative because tanker traffic through the Strait of Hormuz has been severely disrupted during the six-month U.S.-Iran war. With that route already constrained, Saudi Arabia has increasingly depended on its Red Sea infrastructure to move crude toward international markets.
That alternative is now under threat as well.
Houthi forces have advanced rapidly along Yemen’s western coast and seized Perim Island, also known as Mayun Island, at the entrance to the Bab el-Mandeb Strait. They have also captured the Red Sea port of Mokha, strengthening their position along one of the world’s most important maritime corridors. The Associated Press said the Bab el-Mandeb carries around 12% of global trade.
The Houthis have declared that Saudi vessels are subject to a maritime ban, while their military spokesperson said other shipping remains safe. Reuters reported that the group’s latest territorial gains have raised fears that it could exert greater influence over shipping through the Red Sea.
The developments are already affecting Saudi oil exports. According to figures compiled by global trade monitor Kpler and cited by AP, Saudi crude exports to Asia fell from about 3.4 million barrels per day in June to 128,000 barrels per day in August, before recovering to about 700,000 barrels per day in September.
The latest escalation is rooted in a conflict that has reshaped Yemen and the wider Gulf for more than a decade. The Houthis seized Yemen’s capital, Sanaa, in 2014, prompting Saudi Arabia and its allies to intervene militarily in 2015 in support of the internationally recognized Yemeni government. Years of fighting devastated the country and pushed millions toward humanitarian crisis. A UN-brokered truce in 2022 significantly reduced fighting, although it did not produce a lasting political settlement. AP estimates that the war killed about 150,000 people and at times brought Yemen close to famine.
The strategic importance of the current fighting extends beyond Yemen. Bab el-Mandeb connects the Red Sea with the Gulf of Aden and is a gateway to the Suez Canal, making it a critical route for vessels traveling between Asia, Europe and the Middle East. Its growing insecurity comes after Houthi attacks on Red Sea shipping since late 2023 already caused many commercial vessels to divert around the Cape of Good Hope, increasing travel time and costs.
Saudi Arabia now faces pressure from several directions at once. AP reported that Riyadh has considered military and diplomatic options, but a renewed large-scale intervention in Yemen could trigger further attacks on its energy infrastructure. Crown Prince Mohammed bin Salman has also sought U.S. military assistance against the Houthis, but Washington has so far declined direct intervention while offering intelligence support, according to Reuters.
For global energy markets, the danger is the loss of multiple export routes at the same time. With the Strait of Hormuz disrupted, the East-West pipeline under temporary closure and Houthi forces gaining ground near Bab el-Mandeb, Saudi Arabia’s ability to move crude to international buyers is facing an unusually severe series of constraints. Reuters reported that oil prices have already risen sharply, while U.S. retail diesel prices have climbed above $6 per gallon.
The immediate focus is now on whether Saudi Arabia can restore the pipeline, whether Iraq can identify those responsible for the attack, and whether Saudi-backed Yemeni forces can reverse the Houthi advance without triggering a wider regional war. For Saudi Arabia, the loss or disruption of its alternative oil routes could turn the Red Sea from a strategic escape route into another major pressure point in an increasingly interconnected Middle East conflict.
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
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